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Power policy to ensure Rs10 per unit in next three years

The government has carved out a strategy to bring down the average cost of electricity generation to Rs10 per unit from existing Rs14.67 per unit in next 2-3 years under the much touted energy policy to be announced in early July.

However, the final presentation on power policy will be given to Prime Minister Mian Nawaz Sharif on June 27.The power policy would focus on four pivotal points that include the bridging of gap between supply and demand of electricity, ensuring the availability of electricity at affordable prices, minimizing the theft of electricity and improving the efficiency to an acceptable level and making the powers sector sustainable and attractive for investment.

These details were revealed by one of the top functionaries involved in making the power policy on the request not to be named.The Premier would announce the target to add up electricity generation in the system by up to 20,000MW in next three years with the hope that 5000-6000MW would be injected by alluring the private entities in the powers sector. The Discos and Gencos would later on be privatised.

Mentioning about the rationalisation of power tariff keeping in view the massive reduction in the amount for subsidy to power sector, he said that the consumers who utilize the units up to 300 per month would not be affected with the raise in power tariff and this category of consumers would continue paying the existing tariff.

However, the tariff would be increased for those consumers who consume more than 300 units a month. However, the higher and highest slab consumers would pay the most.The Nepra has determined the tariff at Rs14.67 per unit and the existing notified tariff is Rs8.87 per unit showing the gap of Rs5.80 per unit. This gap cannot be filed just by increasing the power tariff by Rs5.80 percent.

This gap is to be bridged by increasing tariff to some extent in next financial year 2013-14 and some is to be increased in 2014-15. And the remaining gap would be bridged by bringing down line losses through good governance.

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